Canon to Acquire Tokki, Accelerate OLED Display Development

Canon Inc has decided to acquire Tokki Corp, a manufacturer of OLED display manufacturing equipment, as its subsidiary. Through the alliance with Tokki, Canon looks to greatly accelerate OLED display development.

The company is also holding high hopes for synergy Tokki could bring to Canon Anelva, its subsidiary manufacturing vacuum film forming equipment for semiconductors and flat panel displays.

Tokki has been primarily engaged in the development, manufacturing and sale of OLED display manufacturing equipment and thin-film solar cell manufacturing equipment.

However, due to factors including sluggish orders, the suspension of OLED manufacturing equipment shipments to Taiwanese clients and the change in specifications of OLED manufacturing equipment targeting the Chinese market, Tokki saw orders drop 49.6% year-on-year (YoY) to ¥3.346 billion (US$30 million) and sales also decline 47.8% YoY to ¥7.194 billion in a fiscal year ended in June 2007.

In terms of profits, the company has logged operating losses for three years in a row from June 2005 to June 2007.

At a board of directors meeting of Nov 13, 2007, Canon resolved to acquire Tokki's shares and share warrants through a tender offer, as well as to purchase shares newly issued by Tokki through a third-party allocation. Tokki also decided to announce its approval for the acquisition at its board of directors meeting on the next day.